International Fuel Tax Assessment: An Application to Chile
July 1, 2011
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Summary
Gasoline and diesel fuel are heavily taxed in many developed and some emerging and developing countries. Outside of the United States and Europe, however, there has been little attempt to quantify the external costs of vehicle use, so policymakers lack guidance on whether prevailing tax rates are economically efficient. This paper develops a general approach for estimating motor vehicle externalities, and hence corrective taxes on gasoline and diesel, based on pooling local data with extrapolations from U.S.evidence. The analysis is illustrated for the case of Chile, though it could be applied to other countries.
Subject: Commodities, Consumption, Expenditure, Fuel prices, Fuel tax, Gasoline, Prices, Public expenditure review, Revenue administration, Taxes
Keywords: Chile, diesel tax, externalities, fuel economy elasticity, fuel economy increase, Fuel prices, Fuel tax, Gasoline, gasoline elasticity, gasoline price elasticity, gasoline tax, Global, motor vehicle, optimal tax, Public expenditure review, truck damage estimate, truck externality, vehicle fuel economy improvement, welfare gains, WP
Pages:
28
Volume:
2011
DOI:
Issue:
168
Series:
Working Paper No. 2011/168
Stock No:
WPIEA2011168
ISBN:
9781462315338
ISSN:
1018-5941
